News

Holden confirms Pontiac deal

Glenn Butler, drive.com.au, February 8, 2007

A major export deal for the Holden Commodore eases the pain of sluggish local sales, but Holden isn’t talking numbers.

DennyMooney,chairmanandmanagingdirectorofGMHolden,withthePontiacG8.

Holden this morning confirmed North America as the VE Commodore's first port of call on an export world tour that will include the Middle East, South Africa and China, first revealed by drive.com.au yesterday.

Holden boss Denny Mooney announced North American export plans for the Australian-made VE Commodore as part of a deal with General Motors' Pontiac brand that is said to be worth as much as $1 billion annually to Australia's largest automotive manufacturer.

The export vehicle will be built in left-hand drive at Holden's Elizabeth manufacturing facility in South Australia and sold in the United States as a Pontiac G8. Two versions will be exported, one with a 3.6-litre V6 engine and a second, more powerful model with a 6.0-litre V8. (more information here)

"This export program confirms VE Commodore is a vehicle designed and engineered to appeal to both local and overseas markets," Denny Mooney, the chairman and managing director of GM Holden said. "It highlights [that] a car developed in Australia can be introduced in the United States, the Middle East and South Africa."

Mooney believes the Commodore is a "perfect fit" for the Pontiac brand, which is rebuilding its reputation for rear-wheel drive performance cars.

"Attributes of the VE Commodore SS are a perfect fit for the Pontiac brand. [Both are] known for performance and driving excitement. For me it's a further confirmation of how world class and globally competitive [Australian] cars really are."

Mooney said the deal will last "for the life cycle of the car," rumoured to be around 6 years, but he would not be drawn on volume or the value to the company of this export program.

"I'm not going to give a forecast because I will be wrong. Let me just say we think it has potential to be our largest export market. It could be upwards of 20-plus per cent of our local production volume."

Bob Lutz, the GM vice chairman for product told drive.com.au at the Detroit show earlier this year that annual volumes of 30,000 to 50,000 were possible. (see related story).

Mooney wouldn't comment on rumours that this was a stopgap measure until the Pontiac G8 could be assembled at the Oshawa plant in Canada. "I can't comment on that. I'm an official Aussie on this one."

He said it was inevitable that vehicles based on the rear-wheel drive architecture "will be built in other parts of the world, definitely", but that this announcement "has no relationship to what may or may not be built in the USA".